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Q: What is differenence between negative inflation and depreatiation?
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Which way does the Phillips curve slope?

The Phillips Curve is an inverse relationship between the rate of unemployment in an economy and the inflation. The lower the unemployment is, the higher inflation we get! Thus we can say that the Phillips Curve is negative (downward sloping)


What are the links between inflation and the economy?

on increasing inflation economy growth decreases


What is the relationship between CPI and inflation?

CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.


What is relationship between inflation and recession?

The relationship between inflation and recession is that a recession will cause inflation to go down. The reason for this is due to their being less money being spent due to the recession.


What does the Phillip's Curve illustrate?

A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.


How do monetary policy control inflation?

Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.


Inflation trend in Nigeria from 2000-2008?

what was the inflation trend in nigeria between 2000 t0 2008 was nigeria at the top


What is the TIPS spread and how is it used to forecast inflation?

It's the difference between the yield on 10 year treasury bills and 10 year Inflation Protected T bills. The difference between the two implies what the market expects inflation to average over the 10 year period. When there's a big difference, inflation fears are high.


What is the relationship between inflation and deflation and Cross of Gold speech?

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What is the relationship between inflation and deflation and the Cross of Gold speech?

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If inflation falls why would unemployment rise?

When economists look at inflation and unemployment in the short term, they see a rough inverse correlation between the two. When unemployment is high, inflation is low and when inflation is high, unemployment is low. This has presented a problem to regulators who want to limit both. This relationship between inflation and unemployment is the Phillips curve. The short term Phillips curve is a declining one. Fig 2.4.1-Short term Phillips curveThis is a rough estimation of a short-term Phillips curve. As you can see, inflation is inversely related to unemployment. The long-term Phillips curve, however, is different. Economists have noted that in the long run, there seems to be no correlation between inflation and unemployment.


What is point to point inflation?

Point inflation is the point at which the curve changes its shape with the fixed rate of change. Point to point is the distance between the changes.